THE ESCALATING cost of funerals can cause serious financial problems, as nowadays Funeral Directors expect payment “up front” without waiting for the deceased’s Will to provide the wherewithal. Often this means that the money has to be borrowed.
BY SETTING ASIDE an amount equal to today’s cost (say £4,000) into a funeral trust fund, the expense can be covered however far into the future it may be.
FROM a purely financial point of view, when funeral costs are escalating at 7.5% p.a. and savings attract such a meagre rate of interest, it makes sense to make a transfer (provided, of course, this would not cause financial hardship).